tsset countrycode timeperiod
encode govtype, generate(govtypecode)
generate rightexecseatsfarright = rightexecseats* farrightinexecutive
generate centerexecseatsfarright = cdcenterexecseats * farrightinexecutive
generate majoritycoalition=1 if govtypecode==1
replace majoritycoalition=0 if govtypecode !=1
generate minoritygov=1 if govtypecode==2
replace minoritygov=0 if govtypecode !=2
generate singlepartymaj=1 if govtypecode==3
replace  singlepartymaj=0 if govtypecode !=3
generate caretaker =1 if govtypecode==4
replace caretaker=0 if govtypecode !=4

**Testing for stationarity of variables (non-dummy variables)
xtunitroot fisher spread, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.spread, dfuller lags(0) **(stationary)
xtunitroot fisher spreadger, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.spreadger, dfuller lags(0) **(stationary)
xtunitroot fisher rightexecseats, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.rightexecseats, dfuller lags(0) **(stationary)
xtunitroot fisher cdcenterexecseats, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.cdcenterexecseats, dfuller lags(0) **(stationary)
xtunitroot fisher rightexecseatsfarright, dfuller lags(0) **(stationary)
xtunitroot fisher d.rightexecseatsfarright, dfuller lags(0) **(stationary)
xtunitroot fisher centerexecseatsfarright, dfuller lags(0) **(non-stationary)  
xtunitroot fisher d.centerexecseatsfarright, dfuller lags(0) **(stationary)
xtunitroot fisher unemployment, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.unemployment, dfuller lags(0) **(stationary)
xtunitroot fisher realgdpgrowthpreviousyear, dfuller lags(0) **(stationary)
xtunitroot fisher d.realgdpgrowthpreviousyear, dfuller lags(0) **(stationary)
xtunitroot fisher governmentdebt, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.governmentdebt, dfuller lags(0) **(stationary)
xtunitroot fisher currentaccountbalance, dfuller lags(0) **(stationary)
xtunitroot fisher d.currentaccountbalance, dfuller lags(0) **(stationary)
xtunitroot fisher inflation, dfuller lags(0) **(stationary)
xtunitroot fisher d.inflation, dfuller lags(0) **(stationary)
xtunitroot fisher averagecreditrating, dfuller lags(0) **(stationary)
xtunitroot fisher d.averagecreditrating, dfuller lags(0) **(stationary)



**RESULTS FOR ERROR CORRECTION MODELS, SECTION III (PARTY CONDITIONING EFFECT)

generate d_spread = d.spread
generate l_spread = L1.spread
generate d_spreadger = d.spreadger
generate l_spreadger = L1.spreadger
generate d_fringov = d.farrightinexecutive 
generate l_fringov = L1.farrightinexecutive
generate d_rightexec = d.rightexecseats
generate l_rightexec = L1.rightexecseats
generate d_centerexec = d.cdcenterexecseats
generate l_centerexec = L1.cdcenterexecseats
generate d_rightfrinteraction = d.rightexecseatsfarright
generate l_rightfrinteraction = L1.rightexecseatsfarright
generate d_centerfrinteraction = d.centerexecseatsfarright
generate l_centerinteraction = L1.centerexecseatsfarright
generate d_election = d.electionyn
generate l_election = L1.electionyn
generate d_coalitionformationyn = d.coalitionformationyn
generate l_coalitionformationyn = L1.coalitionformationyn
generate d_minoritygov = d.minoritygov
generate l_minoritygov = L1.minoritygov
generate d_singlepartymaj = d.singlepartymaj
generate l_singlepartymaj = L1.singlepartymaj
generate d_caretaker = d.caretaker
generate l_caretaker = L1.caretaker
generate d_unemployment = d.unemployment
generate l_unemployment = L1.unemployment
generate d_gdpgrowth = d.realgdpgrowthpreviousyear
generate l_gdpgrowth = L1.realgdpgrowthpreviousyear
generate d_govdebt = d.governmentdebt
generate l_govdebt = L1.governmentdebt
generate d_cabalance = d.currentaccountbalance
generate l_cabalance = L1.currentaccountbalance
generate d_inflation = d.inflation
generate l_inflation = L1.inflation
generate d_creditrating = d.averagecreditrating
generate l_creditrating = L1.averagecreditrating


**Tests for serial correlation (all models)

**Model 1
xi: xtserial d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4

Wooldridge test for autocorrelation in panel data
H0: no first order autocorrelation
    F(  1,      19) =    126.397
           Prob > F =      0.0000

**Model 2
xi: xtserial d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_caretaker l_caretaker d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode

Wooldridge test for autocorrelation in panel data
H0: no first order autocorrelation
    F(  1,      19) =     99.522
           Prob > F =      0.0000

**Model 3
xi: xtserial d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1

Wooldridge test for autocorrelation in panel data
H0: no first order autocorrelation
    F(  1,      14) =    217.368
           Prob > F =      0.0000

**Model 4
xi: xtserial d_spreadger l_spreadger d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4

Wooldridge test for autocorrelation in panel data
H0: no first order autocorrelation
    F(  1,      19) =     97.916
           Prob > F =      0.0000


**Tests for panel heteroskedasticity (all models)

**Model 1
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4, nolog igls panels(heteroskedastic)
estimates store hetero
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4
local df = e(N_g) - 1
lrtest hetero . , df(`df')

LR chi2(19) = 1701.63
Prob > chi2 =  0.0000

**Model 2 
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_caretaker l_caretaker d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode, nolog igls panels(heteroskedastic)
estimates store hetero1
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_caretaker l_caretaker d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode
local df = e(N_g) - 1
lrtest hetero1 . , df(`df')

LR chi2(19) = 1706.19
Prob > chi2 =  0.0000

**Model 3
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1, nolog igls panels(heteroskedastic)
estimates store hetero2
xi: xtgls d_spread l_spread d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1
local df = e(N_g) - 1
lrtest hetero2 . , df(`df')

LR chi2(14) = 1280.97
Prob > chi2 =  0.0000

**Model 4
xi: xtgls d_spreadger l_spreadger d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4, nolog igls panels(heteroskedastic)
estimates store hetero3
xi: xtgls d_spreadger l_spreadger d_fringov l_fringov d_rightexec l_rightexec d_centerexec l_centerexec d_rightfrinteraction l_rightfrinteraction d_centerfrinteraction l_centerinteraction d_election l_election d_coalitionformationyn l_coalitionformationyn d_minoritygov l_minoritygov d_singlepartymaj l_singlepartymaj d_unemployment l_unemployment d_gdpgrowth l_gdpgrowth d_govdebt l_govdebt d_cabalance l_cabalance d_inflation l_inflation d_creditrating l_creditrating i.year i.countrycode if govtypecode !=4
local df = e(N_g) - 1
lrtest hetero3 . , df(`df')

LR chi2(19) = 2137.84
Prob > chi2 =  0.0000


**Tests of co-integration

**Model 1 
reg spread farrightinexecutive rightexecseats rightexecseatsfarright cdcenterexecseats centerexecseatsfarright electionyn coalitionformationyn minoritygov singlepartymaj unemployment realgdpgrowthpreviousyear governmentdebt currentaccountbalance inflation averagecreditrating i.year i.countrycode if govtypecode !=4
predict residualM1, residual
xtunitroot fisher residualM1, dfuller lags(0)
Inverse chi-squared(40)   P       139.7149       0.0000 (RESIDUAL IS STATIONARY, CO-INTEGRATION ASSUMPTION IS FULFILLED)

**Model 2
reg spread farrightinexecutive rightexecseats rightexecseatsfarright cdcenterexecseats centerexecseatsfarright electionyn coalitionformationyn minoritygov singlepartymaj caretaker unemployment realgdpgrowthpreviousyear governmentdebt currentaccountbalance inflation averagecreditrating i.year i.countrycode
predict residualM2, residual
xtunitroot fisher residualM2, dfuller lags(0)
Inverse chi-squared(40)   P       139.9140       0.0000 (RESIDUAL IS STATIONARY, CO-INTEGRATION ASSUMPTION IS FULFILLED)

**Model 3
reg spread farrightinexecutive rightexecseats rightexecseatsfarright cdcenterexecseats centerexecseatsfarright electionyn coalitionformationyn minoritygov singlepartymaj unemployment realgdpgrowthpreviousyear governmentdebt currentaccountbalance inflation averagecreditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1
predict residualM3, residual
xtunitroot fisher residualM3, dfuller lags(0)
Inverse chi-squared(40)   P       137.2853       0.0000 (RESIDUAL IS STATIONARY, CO-INTEGRATION ASSUMPTION IS FULFILLED)

**Model 4
reg spreadger farrightinexecutive rightexecseats rightexecseatsfarright cdcenterexecseats centerexecseatsfarright electionyn coalitionformationyn minoritygov singlepartymaj unemployment realgdpgrowthpreviousyear governmentdebt currentaccountbalance inflation averagecreditrating i.year i.countrycode if govtypecode !=4
predict residualM4, residual
xtunitroot fisher residualM4, dfuller lags(0)
Inverse chi-squared(40)   P        95.0659       0.0000 (RESIDUAL IS STATIONARY, CO-INTEGRATION ASSUMPTION IS FULFILLED)


**Results for Table 3

**Model 1
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
**Long run effects
nlcom _b[L1.farrightinexecutive]/-_b[L1.spread]
nlcom _b[L1.rightexecseats]/-_b[L1.spread]
nlcom _b[L1.rightexecseatsfarright]/-_b[L1.spread]
nlcom _b[L1.cdcenterexecseats ]/-_b[L1.spread]
nlcom _b[L1.centerexecseatsfarright]/-_b[L1.spread]

**Model 2
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.caretaker L1.caretaker d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode, vce(cluster countrycode)
**Long run effects
nlcom _b[L1.farrightinexecutive]/-_b[L1.spread]
nlcom _b[L1.rightexecseats]/-_b[L1.spread]
nlcom _b[L1.rightexecseatsfarright]/-_b[L1.spread]
nlcom _b[L1.cdcenterexecseats ]/-_b[L1.spread]
nlcom _b[L1.centerexecseatsfarright]/-_b[L1.spread]

**Model 3
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1, vce(cluster countrycode)
**Long run effects
nlcom _b[L1.farrightinexecutive]/-_b[L1.spread]
nlcom _b[L1.rightexecseats]/-_b[L1.spread]
nlcom _b[L1.rightexecseatsfarright]/-_b[L1.spread]
nlcom _b[L1.cdcenterexecseats ]/-_b[L1.spread]
nlcom _b[L1.centerexecseatsfarright]/-_b[L1.spread]

**Model 4
xtreg d.spreadger L1.spreadger d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
**Long run effects
nlcom _b[L1.farrightinexecutive]/-_b[L1.spreadger]
nlcom _b[L1.rightexecseats]/-_b[L1.spreadger]
nlcom _b[L1.rightexecseatsfarright]/-_b[L1.spreadger]
nlcom _b[L1.cdcenterexecseats ]/-_b[L1.spreadger]
nlcom _b[L1.centerexecseatsfarright]/-_b[L1.spreadger]


**Figure 4

**Model 1
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread], post
estimates store fullrightnofrM1
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread] + (_b[L1.rightexecseatsfarright]*100)/-_b[L1.spread], post
estimates store fullrightwfrM1 ***(p-value for estimate is  0.073)

**Model 2
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.caretaker L1.caretaker d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread], post
estimates store fullrightnofrM2
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.caretaker L1.caretaker d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread] + (_b[L1.rightexecseatsfarright]*100)/-_b[L1.spread], post
estimates store fullrightwfrM2 ***(p-value for estimate is 0.060)

**Model 3
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread], post
estimates store fullrightnofrM3
xtreg d.spread L1.spread d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4 & prelectoralsystem==1, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spread] + (_b[L1.rightexecseatsfarright]*100)/-_b[L1.spread], post
estimates store fullrightwfrM3 **(p-value for estimate is 0.065)

**Model 4 
xtreg d.spreadger L1.spreadger d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spreadger], post
estimates store fullrightnofrM4
xtreg d.spreadger L1.spreadger d.farrightinexecutive L1.farrightinexecutive d.rightexecseats L1.rightexecseats d.rightexecseatsfarright L1.rightexecseatsfarright d.cdcenterexecseats L1.cdcenterexecseats d.centerexecseatsfarright L1.centerexecseatsfarright d.electionyn L1.electionyn d.coalitionformationyn L1.coalitionformationyn d.minoritygov L1.minoritygov d.singlepartymaj L1.singlepartymaj d.unemployment L1.unemployment d.realgdpgrowthpreviousyear L1.realgdpgrowthpreviousyear d.governmentdebt L1.governmentdebt d.currentaccountbalance L1.currentaccountbalance d.inflation L1.inflation d.averagecreditrating L1.averagecreditrating i.year i.countrycode if govtypecode !=4, vce(cluster countrycode)
nlcom (_b[L1.rightexecseats]*100)/-_b[L1.spreadger] + (_b[L1.rightexecseatsfarright]*100)/-_b[L1.spreadger], post
estimates store fullrightwfrM4 **(p-value for estimate is 0.083)

coefplot fullrightnofrM1 fullrightwfrM1 || fullrightnofrM2 fullrightwfrM2 || fullrightnofrM3 fullrightwfrM3 || fullrightnofrM4 fullrightwfrM4, xline(0) mlabel format(%9.2f) mlabposition(12) mlabgap(*2) 



**RESULTS FOR RIGHT EXECUTIVE RADICALISM, SECTION IV (IDEAS CONDITIONING EFFECT)

generate diffrightfr= mainrightpartylpposition- farrightlrposition
generate diffrightfrecon = mainrightpartymarketeconomyposit- farrightmarketeconomyposition

**Testing for stationarity of variables (non-dummy variables)

xtunitroot fisher spread if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher d.spread if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher spreadger if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher d.spreadger if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher diffrightfr if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher d.diffrightfr if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher diffrightfrecon if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher d.diffrightfrecon if rightpm==1, dfuller lags(0) **(starionary)
xtunitroot fisher unemployment if rightpm==1, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.unemployment if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher realgdpgrowthpreviousyear if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher d.realgdpgrowthpreviousyear if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher governmentdebt if rightpm==1, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.governmentdebt if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher currentaccountbalance if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher d.currentaccountbalance if rightpm==1, dfuller lags(0) **(stationary)
xtunitroot fisher inflation if rightpm==1, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.inflation if rightpm==1, dfuller lags(0) **(non-stationary)
xtunitroot fisher averagecreditrating if rightpm==1, dfuller lags(0) **(non-stationary)
xtunitroot fisher d.averagecreditrating if rightpm==1, dfuller lags(0) **(stationary)


**Results for Table 4

**Model 1 (linear term only)
xtreg spread diffrightfr electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 2 (quadratic term)
xtreg spread c.diffrightfr##c.diffrightfr electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 3 (linear term only)
xtreg spread diffrightfrecon electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 4 (quadratic term)
xtreg spread c.diffrightfrecon##c.diffrightfrecon electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)


**Figure 5

xtreg spread c.diffrightfr##c.diffrightfr electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)
margins, at(diffrightfr=(-50(5)50))
marginsplot, addplot(hist diffrightfr, width(5) yaxis(2) yscale(alt) fcolor(%25) lc(black%50))


**Robustness checks (using German bund as spread weight - Table D.1)

**Model 1 (linear term only)
xtreg spreadger diffrightfr electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 2 (quadratic term)
xtreg spreadger c.diffrightfr##c.diffrightfr electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 3 (linear term only)
xtreg spreadger diffrightfrecon electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)

**Model 4 (quadratic term)
xtreg spreadger c.diffrightfrecon##c.diffrightfrecon electionyn minoritygov singlepartymaj coalitionformationyn d.unemployment realgdpgrowthpreviousyear d.governmentdebt currentaccountbalance d.inflation d.averagecreditrating i.year i.countrycode if rightpm==1, vce(cluster countrycode)
